Two former Parramatta Eels players are accused of harbouring semi-automatic weapons and possessing more than half-a-million dollars in cash after dramatic arrests in Sydney's Centennial Park yesterday.

Coles to refund $12m to small suppliers

Coles will refund more than $12 million to small suppliers, on top of paying a $10 million court-ordered penalty for illegally squeezing them for funds.

Independent arbiter Jeff Kennett said the supermarket chain's actions in implementing its ARC supply chain program in 2011 and demanding certain payments were in some cases unacceptable.

"As can be seen from my decision to refund over $12 million, Coles had in 2011 clearly engaged in some behaviour that I found to be unacceptable," Mr Kennett said on Tuesday.

Coles had already made some substantial improvements in the way it deals with suppliers, he said.

Mr Kennett ordered Coles to refund more than $12 million to "tier three" suppliers, but noted that some amounts were not refunded or were only partially refunded as those payments were found to be genuine commercial dealings.

He ordered Coles refund a further $324,000 to suppliers involved in a second proceeding at which Coles admitted unconscionable conduct in relation to "profit gap" claims, waste claims and penalties it charged for late delivery in 2011.

The former Victorian premier also allowed suppliers to exit the ARC program without penalty or have their ARC contribution rebates reviewed, which he said has resulted in further substantial ongoing savings to suppliers.

Australian Competition and Consumer Commission chairman Rod Sims said the arbitration process would deliver flow-on effects for suppliers more broadly.

"Exit from the program chosen by some suppliers and reduced rates for others will save suppliers significant additional costs into the future," Mr Sims said.

Coles was fined $10 million in December in a settlement over charges of unconscionable conduct and also had to pay $1.25 million in legal costs.

Federal Court Justice Michelle Gordon said Coles demanded payments from suppliers to which it was not entitled by threatening harm to the suppliers that did not comply with the demand.

A Coles spokesman said the company accepted the outcome of the independent arbitration process.

He said Coles had taken many steps since 2011 to improve its relationships with its thousands of suppliers, including implementing a formal supplier charter which had an independent and confidential dispute resolution process.